Icelandic Government proposes a parliamentary resolution on foreign investment.
The Government has agreed on a proposal for a parliamentary resolution on foreign investment. The proposal emphasizes the importance of investment in the Icelandic economy and calls for transparent administration regarding foreign investment and clear and unambiguous regulations concerning the subject.
For several years, foreign investment in Iceland has been scarce and the environment for
investment has been criticized for being complex and inaccessible. Investment is paramount for economic growth in Iceland, following the financial crisis. The last few decades illustrate the hazards of building an economy solely on foreign credit. The economic advantages of foreign investment outweigh those of domestic investment, financed by foreign loans. Therefore, the pursuit of foreign investment is central in the development of societies based on the Nordic welfare state model. Neighboring countries focus on a dependable and secure
legal environment for foreign investment and strong fundamentals support new foreign investment. Foreign investment not only creates new jobs and added value, but also increases the diversity of the private and export sectors, given the right conditions, which is an important aim.
If the proposal is passed, parliament will commission the authorities to seek investment which:
- Supports economic diversification
- Supports environmental protection and sustainable utilization of resources
- Uses new technologies
- Secures the maximum added value through the chain of production
- Supports relatively high job creation and creates a high rate of high worth jobs
- Supports research and development and the acquisition of new knowledge
- Is profitable and provides relatively high tax revenue
- Creates new opportunities or opportunities which are considered desirable to support current domestic activity